Our Bureau

Mumbai , Feb. 1

JM Financial Mutual Fund launched the JM Equity & Derivative Fund today. This new fund is an income-oriented interval scheme that will seek to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market, said a release.

The IPO period for this fund will be from February 4-21, with earliest closing date being February 11.

The JM Equity & Derivative Fund is focused on arbitrage opportunities that will invest in equity shares and take simultaneous sale position in the derivative market in the same underlying security.

The fund house is launching the product after a three-month period of educating financial advisors and other sales staff about the concept of arbitrage.

"This is perhaps for the first time in India that a mutual fund product launch has been preceded by a three-month education programme," said Mr Krishnamurthy Vijayan, CEO.

"The programme covered not only all our sales staff but our operations team and employees of our key distributors, individual intermediaries and staff of corporate clients."

These programmes have been organised with Dunn and Bradstreet, said the release.

"We have trained around 1,000 intermediaries, corporate clients and individual financial advisors, with faculty from Dunn and Bradstreet in seven cities and our fund managers in 14 other cities," Mr Vijayan said.

The returns generated will be by arbitrage and will be market neutral without directional exposures, thus making it like a new asset class, he added.

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